Street likes Transocean profit

What's not clear is how the Gulf of Mexico spill will affect the company.

By Charley Blaine May 5, 2010 6:01PM

Embattled oil driller Transocean's (RIG) shares were up 2% to $74.24 after hours after first-quarter earnings beat Wall Street estimates.

 

The company earned $685 million, or $2.09, down from $939 million, or $2.93 a share. Revenue was $2.6 billion, down from $3.1 billion a year ago. The estimates had been for $2.14 in earnings on revenue of $2.67 billion.

 

The results, however, included $42 million in one-time charges that reduced earnings by 13 cents a share. So, non-GAAP earnings came to $2.22, ahead of the Street consensus.  The charges include losses on the sale of two rigs and writedowns on oil-and-gas properties and a tax charge.

 

The results don't include any effects from the April 20 explosion on its Deepwater Horizon rig as it was drilling a well for BP (BP) that set off the big oil spill in the Gulf of Mexico. The explosion sank the rig and 11 workers are believed dead.

 

Transocean declared the rig a total loss and received a $401 million payment from its insurers. But there are multiple probes into the spill ongoing, and the company said the Department of Justice has asked the company to preserve information about the spill.  

 

The company will hold its analyst call at 10 a.m. ET Thursday.

 

BP, meanwhile, closed up 1.3% to $50.99 on news that one of three breaks in that leaking well had been capped.


But lower oil prices dropped energy stocks generally. Anadarko Petroleum (APC) was down 4% to $61.83. Halliburton (HAL) fell 1.1% to $29.98. 

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